DynCorp plans $455M debt sale

Falls Church-based DynCorp International Inc., in the process of being acquired by Cerberus Capital Management LLP, says it will sell $455 million in new debt as part of the pending acquisition.

DynCorp will offer the debt in the form of seven-year senior notes. It plans to use the proceeds to refinance existing debt and finance costs associated with the Cerberus deal.

DynCorp (NYSE: DCP) agreed in April to be acquired by Cerberus for $1.5 billion in cash and stock. The merger is expected to close later this year.

DynCorps’s fiscal fourth-quarter net income was $24.5 million, up 27 percent from a year earlier. Revenue rose 31 percent to $1.06 billion, led by the acquisitions of Phoenix Consulting Group and Casals & Associates Inc., as well as new work in Afghanistan.